Tuesday April 29, 2008 9:38 pm

3G iPhone to cost $199 from AT&T

Get this - Fortune is saying that AT&T is going to be subsidizing the cost of the 3G iPhone by $200, which would mean that you could get one of the new phones for $199 USD with a 2-year contract. Now, that isn’t as crazy as it seems, as they do this with just about every other phone that they offer. They just haven’t been doing it with the first iPhone. Now, to be clear, if you made the decision to buy the phone from an Apple Store, you would be paying the full price.

Other tidbits in the Fortune article state that the new phone will be 2.5mm thinner than the current iPhone (which itself is 11.7mm thick), and that it will also include a GPS chip. Pricing will be $399 for the 8GB version, and $499 for the 16GB model, before subsidies. As with all Apple rumors, we take this one with a grain of salt, but hey, it’s Fortune, right?